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Why Startups Should Raise Money at the Top End of Normal

Both Sides of the Table

Early-stage investors in technology startups are only looking for growth-oriented companies that can achieve an “exit&# someday – either via selling your company to a larger company or via an IPO. The obvious thing that investors think about is making a financial return on the investment they made in your company.

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On Bubbles … And Why We’ll Be Just Fine

Both Sides of the Table

Responses ranged from, “hey, they’re in a HUGE market&# to “it is an amazing company and their technology rocks.&# And this is happening in mezzanine (pre-IPO) deals as well. And post IPO deals, although these tend to correct more quickly. New investors hate down rounds. Why does all this matter?

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2023 Global Venture Reports were Gloomy, but there are reasons to be optimistic

VC Cafe

Many startups extended runway, cut costs and took on painful down rounds or expensive debt to avoid raising in 2023. The 2023 open source generative AI survey by the Linux Foundation found that 41% of organisations expressed a clear preference for open-source generative AI technologies over proprietary solutions.

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On the Road to Recap:

abovethecrowd.com

The pressures of lofty paper valuations, massive burn rates (and the subsequent need for more cash), and unprecedented low levels of IPOs and M&A, have created a complex and unique circumstance which many Unicorn CEOs and investors are ill-prepared to navigate. In Q1 of 2016 there were zero VC-backed technology IPOs.

IPO 40
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Venture Outlook 2016

Both Sides of the Table

There is a lot of uncertainty about the state of the private, high-growth technology markets and the venture capital markets that underpin them. Great technology firms were built during the last dry period and we saw the huge wealth creation of Facebook, Twitter, Tesla and others. Boom and bust. Markets are markets. The response?

IPO 150
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People-First Capitalism

Reid Hoffman

Airbnb was preparing for an IPO right when the pandemic hit, and everything changed in a matter of days. And back then, the word technology may as well have been like a dictionary definition for the word good. In other words, all technology was a step forward for humanity. Obviously, the challenges of 2020 were next level.

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People-First Capitalism

Reid Hoffman

Airbnb was preparing for an IPO right when the pandemic hit, and everything changed in a matter of days. And back then, the word technology may as well have been like a dictionary definition for the word good. In other words, all technology was a step forward for humanity. Obviously, the challenges of 2020 were next level.